Choosing the right family health insurance in Australia requires careful consideration of coverage for all family members. Family policies typically offer better value than individual policies when covering multiple people, including dependants and children.
What Family Health Insurance Covers
Family health insurance policies in Australia typically include:
- Hospital cover: Treatment for all family members in private hospitals
- Extras cover: Dental, optical, physiotherapy for the whole family
- Dependant coverage: Children up to age 21 (or 25 if full-time students)
- Pregnancy and birth services: Essential for growing families
- Ambulance cover: Emergency transport for all family members
Age Limits and Dependant Coverage
Understanding when children can remain on family policies:
- Under 21: All children automatically covered
- 21-25 years: Must be full-time students to remain dependants
- Over 25: Need their own individual policy
- Disabled dependants: May remain covered indefinitely
Choosing the Right Coverage Level
Consider these factors when selecting family coverage:
Hospital Cover Tiers
For families, consider higher tiers if you have:
- Plans for more children (pregnancy coverage in Silver/Gold)
- Active children prone to sports injuries
- Family history of chronic conditions
- Preference for choice of doctor and private rooms
Learn more about different hospital cover options to find the best fit. Young families should also understand maternity coverage and waiting periods.
Extras Cover for Families
Family extras cover often provides excellent value because:
- Children need regular dental check-ups and orthodontics
- Multiple family members may need optical services
- Physiotherapy for sports-active family members
- Psychology services for teenage mental health support
Cost Considerations and Savings
Family health insurance costs depend on:
- Number of dependants: More children don't always mean higher premiums
- Coverage level: Basic vs comprehensive coverage
- Excess amounts: Higher excess reduces premiums
- Government rebates: Income-based rebates can significantly reduce costs
- Medicare Levy Surcharge: High-income families benefit from avoiding this tax penalty
Tips for Maximising Family Policy Value
- Use annual limits: Ensure all family members use their extras benefits
- Plan treatments: Schedule dental and optical appointments strategically
- Consider upgrading: As children age, their healthcare needs may change
- Review annually: Family circumstances and health needs evolve
- Coordinate with school healthcare: Understand what's covered vs school health programs
Special Considerations
Families should also consider:
- Chronic conditions: Ensure adequate coverage for ongoing family health issues
- Mental health support: Important for teenagers and young adults
- Preventive care: Coverage that encourages regular health check-ups
- Emergency situations: Ambulance and emergency room coverage
FAQs
At what age do children need their own health insurance policy?
Children can usually stay on family policies until age 21, or until 25 if they're full-time students. After this, they need individual coverage.
Is family health insurance more expensive than individual policies?
While family premiums are higher than individual policies, they typically offer better value per person when covering multiple family members.
Can we add children to our policy after they're born?
Yes, newborns can be added to family policies immediately after birth without waiting periods for most services.